Credit Card Fraud

One part of credit card companies' arsenal in the war against fraud is the three-digit security code found on the back of your credit card.

Why is the security code there?

Your credit card's security code is designed to make fraudulent purchases more difficult. It's primary angle is to make it a more certain that, in electronic or phone transactions, the card is actually with the person making the purchase.

If a thief has somehow gained access to your credit card information, they most likely won't have the security code because it is never included with your credit card information. It is also not printed in of one of the raised numbers on your credit card, so if a merchant makes a copy with the printed carbon method then the three-digit security code will not be retained as part of that information. So, no thief will be able to fish through Dumpsters in order to find your three-digit security code.

Remember, the code doesn't make your credit card fraud-proof

The security code on the back of your credit card has gone a long way to putting a dent in credit card fraud.

However, thieves have gotten smarter about it. One new tactic is to find your credit card information and then e-mail you with it, pretending to be your credit card company. They then ask you for your three-digit security code. Many recipients of the e-mail think it must be legitimate since it contains your information, and so they respond by giving out their security code.

To learn more about your security code, credit cards or any other credit-card related topic, be sure to speak to a representative of your credit card company.

As technology advances, so do the ways that criminals commit crimes.Credit card fraud for online purchases alone topped $4 billion in 2008. One crime that is on the rise is credit card fraud, but there are some simple steps consumers can take to help prevent them from becoming the next statistic.

How to Prevent Fraud

• When you get a new credit card in the mail, immediately sign the box on the back as most vendors match that signature with the one on your driver's license
• If you are dining out and pay by charge card, keep and eye on your credit card at all times as it makes its way around the dining room so you can see if someone is illegally copying down or swiping your number
• If you are making a purchase by phone, do so in private so no one has the opportunity to memorize your credit card number
• Do not give out your credit card number to anyone you did not initiate the call to
• Do not email your credit card number, especially if the request for your information is solicitedvia an email as it may be a phishing scam
• Always check your credit card statements when they come in to verify if the charges made were actually yours
• Know where your card is at all times and if you have multiple cards, lock the ones that you are not currently using in a safe

By being an alert and cautious consumer and credit card holder, you can help slow the increase in credit card fraud. Make sure to be aware of your surroundings when you are out, store your credit card safely when not in use and check your credit card statements for accuracy. By following these and all the previously mentioned tips you can help protect your financial well being.

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